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When comparing a personal loan vs. a personal line of credit, both sources of funding can be used for a variety of expenses and typically require a hard credit check during the application process. However, there are also differences: specifically, in how the loan funds are disbursed to the borrower and how the credit is repaid.

Here, learn more about deciding whether a personal loan or a personal line of credit might be right for you.

What Is a Personal Line of Credit and How Does It Work?

A personal line of credit (LOC) is a type of revolving credit similar to a credit card. But funds are typically accessed by writing checks provided by the lender or requesting a funds transfer to your checking account instead of by using a card.

An LOC typically allows the borrower to withdraw funds repeatedly, up to the credit limit. Any funds that are withdrawn are subject to repayment with interest. When they are repaid, they can be accessed again up to your particular credit limit. There may be a limit on the number of years the line of credit is available.

Additional points to know:

•   Some lenders may assess fees associated with an LOC. There may be a maintenance charge for inactive accounts. There may also be ongoing fees, monthly or annual, even if the LOC is being used. Some other expenses may include application fees, check processing fees, and late fees, among others. It’s important to be aware of any potential fees before you sign an LOC agreement.

•   Personal lines of credit are usually unsecured, although you may be able to put up collateral to get a lower interest rate. A home equity line of credit, or HELOC, is an example of a secured line of credit.

•   Typically, a personal LOC will be offered by a bank or credit union, and you might have to have another account with the lending institution to be considered for an LOC.

•   If your LOC is unsecured, the interest rate will probably be variable, which means it could go up or down during the loan’s term, and your payments could vary. But you’ll only be charged interest on the amount you withdraw. If you’re not using any LOC funds, you won’t be charged interest.

If you expect to have ongoing expenses or if you have a big expense (like a wedding or home renovation) but don’t know what your final budget will be, this type of borrowing might be a useful financial tool.

A personal LOC also may be the right fit if you need some flexibility with your borrowing. For example, self-employed workers who know they’ll be paid by a client but aren’t sure exactly when, can tap into their line of credit to pay expenses while they wait. They can pay that money back when they receive payment from the client, and they won’t have to use high-interest credit cards or borrow from other savings to make ends meet.

Of course, there are downsides to that easy-to-access money. Here’s a closer look:

•   Since unsecured lines of credit are considered by lenders to be riskier than their secured counterparts, it can be more difficult to qualify at a favorable interest rate.

•   Once you have access, it may be tempting to use the funds for purposes other than originally planned. Keeping in mind the intended purpose for the funds may help you stick to it and not use the funds for other purchases.

Pros and Cons of Personal Lines of Credit

Having funds that can be accessed as needed can be helpful. But there are also some drawbacks to consider. Take a look at how the pros and cons stack up for personal lines of credit.

Pros of Personal Lines of Credit

•   Easy access to funds.

•   Open-ended vs. set distribution of money.

•   Minimal limits on use of funds.

•   Can be useful for ongoing expenses.

Cons of Personal Lines of Credit

•   May have a higher interest rate than other forms of credit.

•   Typically are unsecured, so may be more difficult to qualify for than other forms of credit.

•   Interest rate could be variable, presenting a budgeting challenge.

•   Ease of access can be tempting to use for impulse shopping.

What Is a Personal Loan and How Does It Work?

A personal loan, on the other hand, is a fixed amount of money disbursed to the borrower in a lump sum. If the loan has a fixed interest rate, as is typical for personal loans, the payments are in fixed installments for the term of the loan. If the loan has a variable interest rate, the monthly payments may fluctuate as the interest rate changes in accordance with market rates.

Because personal loans typically have lower interest rates than credit cards, they’re often used to pay off other debts such as home and car repairs or medical bills, or to consolidate other higher-interest debts such as credit card balances into one manageable — and potentially lower — monthly payment.

Here are some more ways these loans are often used:

•   A personal loan can be a helpful tool for debt consolidation. If you can qualify for a personal loan that has a lower interest rate than your other outstanding debts, you may be able to save money in the long run by consolidating those debts. In order for this financial strategy to work, it’s important to stop using the old sources of credit to avoid going deeper into debt.

•   A personal loan also could be a suitable choice for paying for a wedding or home renovation. But it’s important that you feel confident about being able to repay the loan on time and in full. If you don’t responsibly manage a personal loan — or any kind of debt, for that matter — your credit can be adversely affected.

•   You can apply for a secured or unsecured personal loan. A secured loan, which is backed by collateral, is typically considered less of a risk by lenders than an unsecured loan is. Collateral is an asset the borrower owns — a vehicle, real estate, savings account, or other item of value. If the borrower fails to repay a secured loan, the lender has the right to take possession of the asset that was put up as collateral.

Here are a few more points about how the process of getting a personal loan can work:

•   An applicant’s overall creditworthiness will be considered during the approval process. Generally, an applicant with a higher credit score will qualify for a lower interest rate, and vice versa.

•   Some lenders charge personal loan fees such as origination fees or prepayment penalty fees. Before signing a loan agreement, it’s important to be aware of any fees you may be charged.

Pros and Cons of Personal Loans

When you need a set amount of money for an expense, a personal loan can be a good choice. Along with the benefits of using this financial tool also come a few drawbacks to consider.

Pros of Personal Loans

•   May be a good choice for large, upfront expenses.

•   Typically have fixed interest rates.

•   Steady payments may be easier to budget for.

•   May have a lower interest rate than credit cards.

Cons of Personal Loans

•   Unsecured personal loans may have higher interest rates than other forms of secured credit.

•   May need a higher credit score to qualify for lower interest rates.

•   If not used responsibly, it can add to a person’s debt load instead of alleviating it.

•   May have fees.

Major Differences Between Personal Lines of Credit and Personal Loans

When you’re looking for the right source of funding for your financial needs, it can help to compare different types. Here are some specifics to consider when looking at personal LOCs and personal loans.

Considering the Type of Debt

When you’re thinking about applying for a personal LOC or a personal loan, it’s important to consider the effect borrowing money can have on your credit score. If you borrow money without a repayment plan in place, you could run into trouble no matter which borrowing option you go for. But each is looked at differently by the credit bureaus.

A personal LOC is revolving debt, which means it will factor into your credit utilization ratio — how much you owe compared to the amount of credit that’s available to you. This can count as the second most weighty factor (at 30%) toward your score.

For a FICO® Score, keeping your total credit utilization rate below 30% is recommended. That means if your credit limit is $15,000, you would use no more than $4,500.

•  Using a large percentage of your available credit can have a negative effect on your credit score. And lenders may see you as a high-risk applicant because they may assume you’re close to maxing out your credit cards.

•  Using a small percentage of your available credit can work in your favor. If your credit utilization ratio is low (under 10%), it signifies to potential lenders that other lenders have determined you to be a good risk, but you don’t need to use the credit that’s been extended to you.

•  Having a low credit utilization rate by using just a little of your available credit could actually have a more positive effect on your credit score than not using any of it at all. Lenders generally look for signifiers of a healthy relationship with credit.

A personal loan is installment debt and isn’t considered in your credit utilization ratio. In fact, if you pay off your revolving debt with a personal loan, it potentially can lower your credit utilization ratio and have a positive effect on your credit score. A personal loan also can add some positive variety to your credit mix — something else that’s calculated into your credit score.

Personal LOC or Personal Loan: Which Is Right for You?

Before you decide to take out a line of credit or a personal loan, it’s wise to compare lenders. Look at the annual percentage rate and whether it’s fixed or variable. You can also take into account any fees you might have to pay, including origination fees, annual fees, access fees, prepayment penalties, and late payment fees.

Estimating the total cost of the loan until it’s paid in full, including the principal loan amount, interest owed, and any fees or penalties you could potentially be charged, will help you figure out how much the loan will actually cost you.

You might use an online personal loan calculator to help you assess these total costs.

The Takeaway

Deciding when and how to borrow money can be a tough decision. Personal loans and personal lines of credit each have their pros and cons. Personal lines of credit allow you to borrow up to a credit limit, while personal loans disburse a lump sum. Interest rates, fees, and other features may vary. It’s wise to consider your needs and options carefully, reading the fine print on possible offers.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

Is it better to get a loan or use a line of credit?

Loans can be better suited for fixed expenses or one-time needs, while lines of credit can offer flexibility for repeated borrowing. Loans often carry lower interest rates but may involve higher upfront fees; lines of credit, on the other hand, may cost more over time due to variable rates and fees.

What are the downsides of a line of credit?

The interest rates for a personal line of credit may be higher than those charged on other sources of funding, and if the rate is variable, that can make budgeting more difficult. Also, there can be fees, such as an annual or monthly maintenance fee and transaction fees.

Does a line of credit hurt your credit score?

A line of credit can involve a hard credit pull when you apply, which can temporarily lower your credit score by several points. After that, how you manage your line of credit can determine how your credit score is impacted. Keeping your usage low and always paying on time can help build your score. Taking on too much debt and missing your payment due dates can lower your score.

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOPL-Q425-038

If you have an interest in both art and technology as well as a knack for creating distinctive visual designs, you might consider a career as a graphic designer. On average, graphic designers make $68,610 a year on average in the U.S., according to the U.S. Bureau of Labor Statistics.

How much money a graphic designer makes, however, can vary widely depending on their education, experience, job location, and industry. But with a little career savvy, you can fulfill your creative passions without having to be a starving artist.

What Are Graphic Designers?

Graphic designers create visuals to bring ideas to life. They can render their projects by hand or by using design software. Graphic designers may get paid by the hour or earn a yearly salary working for a company.

Here’s a look at some of the duties you might have as a graphic designer.

•   Designing visual marketing materials: This may include creating brand logos, websites, brochures, advertisements, packaging, and other promotional materials.

•   Targeting an audience: Graphic designers must research and understand their target audience so their product can successfully communicate a client’s message.

•   Creating and editing images: This can include both illustrations and photographs.

•   Choosing colors, layout design, and typography: A graphic designer’s mission is to deliver a product that is effective and eye-catching.

•   Staying current: Designers need to be up-to-date with the latest design software and trends.

•   Maintaining deadlines: Graphic designers often need to juggle multiple projects while meeting strict deadlines.

Working as a graphic designer is generally not a job for introverted people. While you may do a fair amount of solo design work, you’ll likely be asked to collaborate with copy editors and marketing teams, meet with clients, and present designs to co-workers and clients for feedback.

Recommended: Best Low-Stress Jobs for Introverts With Anxiety

How Much Do Starting Graphic Designers Make a Year?

While most entry-level graphic designers won’t initially get paid $100,000 a year, it is a position that requires a specific skill set, so you’re likely to earn more than the minimum wage. The average entry level graphic designer salary in the U.S. is $55,951 as of October 29, 2025, but the range typically falls between $41,500 and $65,000, according to ZipRecruiter.

💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.

What is the Average Salary for a Graphic Designer?

On average, graphic designers make anywhere from $37,600 to $103,030, with the average falling at $68,610.

How much you can earn as a graphic designer ultimately depends on how much experience you have and what particular design niche you choose. For example, a lead graphic designer makes $91,161 per year on average, according to ZipRecruiter, while a user interface (UI) designer salary averages $100,548.

While working as a graphic designer is not one of the highest-paying jobs in the U.S., people with an interest in both technology and art can find this career deeply fulfilling. The job also provides the opportunity to continually tackle new projects, keeping the work fresh and challenging.

Recommended: What Is a Good Entry-Level Salary?

What is the Average Salary for a Graphic Designer?

Geographic location can influence how much money a graphic designer can make in the U.S. Here’s a look at the average graphic designer salary by state.

Source: U.S. Bureau of Labor Statistics

Recommended: Is a $100,000 Salary Good?

Graphic Designer Job Considerations for Pay and Benefits

Within the field of graphic design, there are a number of specialty areas you might consider. Here’s a look at some of the most common types of graphic designers.

•   Web designers specialize in creating functional and visually appealing layouts, while ensuring the design elements are user-friendly.

•   User experience (UX) designers craft the user experience of mobile apps, websites, and other products.

•   User interface (UI) designers focus on the visual, interactive elements of apps, websites, and electronic devices to create aesthetically-pleasing interfaces.

•   Illustrators create visual designs for ad campaigns, magazines, books, and other media. Some may specialize in medical illustrations or children’s books.

•   Print designers come up with images and logos for brochures, business cards, and packaging materials.

•   Identity and branding designers create visual identities for companies and products.

•   Environmental graphic designers create visual designs for physical spaces, including museums, stores, and public spaces.

•   Motion graphic designers can work on animation and moving graphics for TV and movie title sequences, how-to videos, and more.

Degree requirements: To earn competitive pay, most aspiring graphic designers will need to obtain a bachelor’s degree from an accredited graphic design program. You may also need some additional technical training to meet hiring qualifications for the positions listed above.

Job benefits for a salaried graphic designer can include:

•   Health insurance

•   Dental insurance

•   Vision insurance

•   Vacation/sick leave

•   Retirement plan

💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

Pros and Cons of Being a Graphic Designer

Every job has its pluses and minuses. Here a look at some of the advantages and disadvantages of being a graphic designer.

Pros of Being a Graphic Designer

•   Creative fulfillment: Graphic designers get to stretch their artistic muscles by developing captivating visuals for their clients.

•   Good work-life balance: Salaried graphic designers typically work nine-to-five hours. Many have the opportunity to work from home.

•   Freelancing options: If you get tired of working in the same place with the same people, you can choose to freelance. Graphic design is a job you can do almost anywhere at any time.

•   Being part of a team: You’ll likely collaborate with design teams, clients, and marketing professionals.

•   Career longevity: As long as you stay current and on top of your game, you can work as a graphic designer at any age. You could even potentially pick up freelance work as a retiree.

Cons of Being a Graphic Designer

•   Sedentary lifestyle: Being a graphic designer doesn’t require the physical demands of a trade job. You’ll spend a lot of time behind a computer monitor.

•   Solitary work stints: While it’s true you’ll have chances to work with a creative team, much of your hour-to-hour creating happens alone.

•   Stressful deadlines: Even though office hours are typically nine to five, advertising campaigns and projects have hard deadlines you’ll be expected to meet.

•   Difficult clients: Clients may be critical of what you come up with, or they may constantly change their minds.

•   Limited advancement opportunities: Graphic designers tend to stay in their lane. However, you could be moved into a managerial position, and there is still the potential for pay raises every year.

The Takeaway

If you crave expressing yourself as a visual artist, working as a graphic designer can pay you an average of $68,610 a year for doing what you love.

Being a graphic designer also allows you to work in an energetic, collaborative atmosphere, while reaping creative and financial rewards.

Whatever career path you ultimately choose, you’ll want to make sure your potential earnings can cover your everyday living expenses. Try creating a budget and check out financial tools that can help track your spending.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

Can you make $100k a year as a graphic designer?

The average salary for a general graphic designer is $68,610 in the U.S. While it’s not impossible to make $100,000, you would have to be at the top of your skill set and acquire some specialized experience.

Do people like being a graphic designer?

For many people, graphic design is a stimulating and rewarding career. Individuals who enjoy working on innovative, visual projects and collaborating with creative teams will probably like being a graphic designer.

Is it hard to get hired as a graphic designer?

Landing a job as a general graphic designer can be competitive. You may find it easier to get hired if you have a particular design specialty, such as UX (user experience), UI (user interface), or product design.

Photo credit: iStock/Moyo Studio

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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SORL-Q425-043

Gearing up for a Master of Business Administration program involves a lot of prep, especially when it comes to taking the GMAT™ — the Graduate Management Admission Test. It’s a standardized test that assesses potential business school students.

The GMAT was created by the Graduate Management Admission Council (GMAC) and is now the most widely used assessment for graduate management admissions.

It’s available in approximately 114 countries, used by more than 2,400 universities and institutions worldwide, and was taken by more than 78,000 students in 2024.

The exam is important for prospective MBA students because it may carry a lot of weight in the application, with some experts estimating it accounts for up to 22% of admissions decisions.

Because of this, getting prepared for the GMAT is crucial to getting into an MBA program.

Important Facts About the GMAT

There are three sections in the GMAT: quantitative reasoning, verbal reasoning, and data insights. These sections consist of content relevant to today’s business opportunities and challenges.

The total score a student can receive for this exam will fall somewhere between 205 and 805, and it’s based on their performance on all three sections of the exam. Scores for each section are between 60 and 90, and each section is weighted equally.

The quantitative reasoning section measures mathematical ability, including algebra and arithmetic. There are 21 questions, and the answers to them rely on analysis and logic.

The verbal reasoning measures a student’s ability to read and comprehend material and to make and evaluate arguments. There are 23 questions in this section consisting of reading comprehension and critical reasoning.

The data insights section is new, and it measures student’s ability to interpret and analyze data and apply it to business scenarios. This section also measures digital and data literacy. There are 20 questions that may require math, verbal reasoning, data analysis, or all three of these skills.

Students’ unofficial scores will be displayed on-screen immediately after they finish the exam. They are not allowed to record or save their unofficial scores. An email with their official score will be sent to them.

A student’s GMAT score helps business schools evaluate how prepared they are for the rigors of MBA coursework. There is no set score that students must achieve to be accepted into a program, but students can figure out an estimate of how well they need to do by researching the average score accepted students got on their GMAT exam.

This can give prospective students a good idea of what score they should aim to receive to be considered for acceptance to a particular program.

Making a Study Plan

Making a GMAT study plan depends on when applications are due, which will differ by school.

It’s recommended that students take the exam at least three to four months before their application deadline. This will give students enough time to retake the test if necessary. The test can be taken up to five times within 12 months. There is now no limit on how many times a student can take the GMAT.

Once students know their application deadline, they can make a plan for when they want to take the exam. Exams are available year-round, and students can register to take it online at mba.com.

Each student will have to determine how much preparation is right for them, but usually, it’s recommended to spend three to six months preparing for the GMAT.

According to GMAC, the makers of the exam, the majority of test takers prep for at least 60 hours. Those who did so, scored 500 or higher on the test.

Studying more isn’t a guarantee of a high score, but it seems to help a majority of students find success. With this information, students can create a study plan that suits them and their timeline best.

Recommended: The Ultimate Guide to Studying in College

Study Tips for the GMAT

With 60 or more hours of preparation recommended, how can students best spend those hours?

Here are some tips on how to study for the GMAT that may help students make the best of their prep time.

Taking Practice Exams

Familiarity with the format of the test means there are few surprises. Students will be familiar with each section of the test, the order of the sections, and how the instructions are worded.

Studying the content is important, but so is knowing what to expect when test day comes.

The most effective way to use practice tests is to take one first and use it as a baseline so it’s easy to see where improvements need to be made and how much progress is being made after each consecutive practice test.

The GMAT takes two hours and 15 minutes. Each section is 45 minutes each, and there is one optional 10-minute break.

Taking practice exams is also a good way for students to learn how to pace themselves through each section of the test.

Recommended strategies are keeping a consistent pace throughout the entire exam, keeping in mind how many questions are in each section, and estimating how much time is allotted for each question.

•   The quantitative reasoning section includes 21 questions over 45 minutes.

•   The verbal reasoning section gives test takers 45 minutes for 23 questions.

•   The data reasoning section has 20 questions to be answered over 45 minutes.

Students may choose to use official GMAT exam prep packages, which vary in cost (one is free).

Hundreds of quantitative and verbal reasoning questions, as well as data reasoning questions can be accessed through these official packages.

Students can also purchase unofficial GMAT practice tests if they need more resources.

Tutoring and Peer Study Groups

For students who want extra help preparing for the GMAT, getting a private tutor, taking a prep course, or finding a study group may be options to consider.

A benefit to these strategies is the addition of regular feedback and accountability, which can help students stick to their GMAT study plan.

For students with a tighter budget, finding a GMAT support group and free practice exams may be more affordable routes.

Staying Healthy

Performing well during a stressful examination can be made easier by maintaining good physical and mental health. It’s recommended that students get plenty of rest in the days before the exam, as well as keep up a healthy diet.

Both rest and nutrition can impact physical wellbeing. Going into the GMAT in good physical condition can help students reduce stress and build confidence.

During practice tests, students can practice stress management techniques, which may make it easier to use them during the official test.

Test-taking anxiety is a common phenomenon, and each student may want to learn which coping techniques work best for them.

What About Finances?

Students who are considering an MBA program may be shocked when they see the high cost of tuition. According to the Education Data Initiative, the average cost of an MBA program is $62,820. However, this can range from $44,640 to over $71,000 depending on the school.

Options for decreasing the cost of earning an MBA may be getting a master’s degree online or getting financial aid to help cover the cost.

There are a few options when it comes to paying for graduate school.

Apply for Federal Financial Aid

Filling out the Free Application for Federal Student Aid (FAFSA®) as a graduate student means the aid is given based on the student’s income, not their parents’. This could help students receive more federal aid than they did as undergraduates.

After submitting the FAFSA, students will receive a FAFSA submission summary, which provides information about their federal student aid eligibility.

The schools to which a student has applied and been accepted will send a financial aid package offer letter, and the student can decide whether to accept or decline the offer.

Federal student financial aid can come in the form of work-study, grants, or loans. Grants usually don’t need to be repaid, but loans do. Graduate students are not eligible for subsidized student loans, only unsubsidized, so interest will start accruing as soon as the loan is disbursed.

Recommended: Private Student Loans vs Federal Student Loans

Work a Part- or Full-time Job

Another option may be working while getting an MBA, with some employers helping to pay for tuition. There are more part-time and online MBA options than there used to be, making it easier for students to work while finishing school.

Apply for Scholarships

Students can also apply for scholarships through the school they are attending, as well as from private or professional organizations. Scholarships usually vary in their eligibility requirements, and it’s recommended that students seek out and apply for all they may be eligible for.

Use Private Student Loans

Another option for funding an MBA program may be private student loans. Private student loans do not come with the same benefits and protections that federal loans do, like income-driven repayment plans and student loan forgiveness. The interest rates and repayment options vary by lender, so students are encouraged to do their research carefully before considering this option.

It’s also possible to refinance student loans in the future. With refinancing, borrowers exchange their loans for a new private loan, ideally one with a lower interest rate if they qualify. That could help save them money.

Keep in mind, though, that refinancing federal student loans means you’ll no longer be eligible for federal benefits, including income-driven repayment plans and student loan forgiveness. If you’re currently using or plan on using federal benefits, it’s not recommended to refinance your federal student loans.

The Takeaway

Taking the GMAT requires months of study and prep work. Learning about the structure of the exam and familiarizing oneself with the kinds of questions asked is key. Students can take practice exams and join study or tutoring groups to prepare.

Another important issue to consider is how to afford an MBA program. Students can apply for financial aid, work full- or part-time, or take out and/or refinance student loans.
Figuring out how to prepare for and pay for graduate school can feel overwhelming, but fortunately, help is available for both.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

FAQ

How long should I study for the GMAT?

It is recommended to study for three to six months for the GMAT. According to GMAC, the makers of the exam, students who studied for at least 60 hours scored 500 or higher on the exam. Creating a study plan and taking practice tests can help you prepare.

Is 600 a good GMAT score?

Yes, 600 is typically considered a pretty good GMAT score. The average score for all GMAT test takers is about 555. For the top 10 business schools, average scores range from 645 to 695; for the top 20 schools, scores range from 615 to 695.

When should I retake the GMAT?

You might consider retaking the GMAT if your score was below the average score of the schools you’d like to get into. You might also want to retake the test if your score was well below what you scored on practice tests. However, you must wait at least 16 days before retaking the GMAT.

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.